SEC Investigation and Demise of Tucker Corporation
One of Tucker's most innovative business ideas caused trouble for the company, however. His Accessories Program raised funds by selling accessories before the car was even in production. After the war, demand for new cars was greater than dealers could supply, and most dealers had waiting lists for new cars. Preference was given to returning veterans, which meant that non-veterans were bumped down on the waiting lists indefinitely. Tucker's program allowed potential buyers who purchased Tucker accessories to obtain a guaranteed spot on the Tucker dealer waiting list for a Tucker '48 car.
This concept was investigated by the U.S. Securities and Exchange Commission and the United States Attorney, and led to an indictment of company executives. Although all charges were eventually dropped, the negative publicity destroyed the company and halted production of the car.
Read more about this topic: 1948 Tucker Sedan
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